The Statement of Cash Flows: Direct and Indirect Method

Description

This note explains how to prepare, read and interpret the Cash Flow Statement, both using the direct and the indirect methods. The Cash Flow Statement is a financial statement that summarizes how the firm has generated and consumed cash over a period of time. The note illustrates the content and structure of the Cash Flow Statement and how it relates to the Balance Sheet and the Income Statement.

Learning Objective

The note illustrates the content and structure of the Cash Flow Statement and how it relates to the Balance Sheet and the Income Statement.

Related Documents

• Introduction to Financial Accounting
• Introducción a la contabilidad financiera (IESE)
• The Balance Sheet
• El balance de situación
• The Income Statement
• Accounting for Inventories
• Accounts Receivable Valuation
• Noncurrent Assets
• Liabilities: General Issues
• Long-Term Debt and Bonds
• Shareholders' Equity
• Consolidation
• Consolidación
• Tax Accounting

Keywords

Accounting Financial accounting financial reporting Financial statements